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Crude Prices Decline

Crude oil prices fell on Monday, paring some of last week's 2% rally, despite evidence of slowing US production and a fourth weekly increase in US investor holdings of crude futures. High oversupply and concern about demand growth in key areas of consumption such as emerging markets have stripped 50% off the value of a barrel of oil over the last year and kept the price below $50 a barrel for most of the past nine weeks, Reuters reported. Brent crude futures were down 92 cents at $47.68 a barrel while US West Texas Intermediate crude was down $1 per barrel. The crude price is set for an 11% fall in September, its 11th monthly decline out of the last 15 months. Monday's price falls came despite an ongoing reduction in US drilling, which has been on the decline for four straight weeks, a sign continued weak prices were causing oil and gas producers to reduce drilling plans.